Financial Crime World

Suriname Exposed: Money Laundering Techniques Abound in Tiny South American Nation

A Perfect Storm of Corruption and Weak Regulations

In a shocking revelation, Suriname has been revealed as a haven for money laundering, with corruption and weak regulations allowing criminals to operate with impunity. The small South American nation’s porous borders, lack of technical capacity, and endemic corruption have created a perfect storm for money laundering, with an estimated $56 million to $139 million being laundered every year.

Banking Sector Weaknesses

The country’s banking sector is one of the key weaknesses in anti-money laundering (AML) efforts. Banks prioritize profit over compliance, and the government’s inability or unwillingness to tackle money laundering has led to a culture of corruption, where convicted criminals operate their businesses with impunity from the heart of government.

  • Used cars are a popular method for transaction-based laundering, with vehicles being imported and sold to hide dirty cash.
  • The country’s porous borders with Brazil and Guyana allow for easy smuggling of illegal gold and cocaine.
  • Mineral trafficking is also a significant risk, with gold being the country’s largest export and representing nearly 80% of all trade.

Corruption at All Levels

The article reveals that Suriname has no political will to tackle money laundering or criminality. Rampant corruption exists at all levels of government, despite having anti-corruption laws on the books. The mandated Anti-Corruption Commission has not been established.

Key Facilitators and Risks

  • Lawyers, notaries, and car dealers are key facilitators for money laundering.
  • Currency exchanges and fintech companies also present risks due to the country’s lack of regulation in these sectors.
  • Drug trafficking is a significant risk, with Suriname being a key transit point for cocaine moving from Colombia and Venezuela to Europe.

Shocking Case

A private company, Kaloti Suriname Mint House (KSMH), was given sole authority to value and collect taxes on gold exports in 2015. However, it was revealed that KSMH is a front for a UAE money laundering operation worth billions.

Terrorist Financing Risk

Terrorist financing remains a significant risk, with Dino Bouterse, the former head of the Anti-Terrorism Unit, being convicted in a US federal court of conspiring to import drugs and provide material support to Hezbollah.

National Risk Assessment and Urgent Attention Required

In a rare glimmer of hope, a national risk assessment was completed in 2021. However, it is unclear whether the government will act on its findings. The article concludes that Suriname’s money laundering problem requires urgent attention from international authorities and calls for stricter regulations and enforcement to combat this growing threat.